Outrageous. The Fed is debasing itself by putting Wall Street banks’ favorite lawyer in charge of bank supervision.

We need more focus on Warsh's deregulatory policies. He wants to gut bank oversight at a dangerous time in the markets, like he pushed for in 2006 before the 2008 crisis. Similar to Trump's pick for SEC Chair Paul Atkins. Arguably more dangerous than bad monetary policy. www.pbs.org/newshour/sho...

If you think Powell (at times) had a moderating influence on Mnuchin/Quarles' and Bessent/Bowman's worst deregulatory impulses, don't count on the same from Warsh. Even if he weren't already so inclined, expect Warsh to defer to Bessent/Bowman's aggressive deregulatory agenda.

Now in print at Yale JREG: "Least-Cost" Resolution. Inspired by my stint advising DOJ Antitrust during the 2023 banking crisis, the article shows how the least-cost resolution requirement for failed banks increases concentration, instability, and inequality. www.yalejreg.com/print/least-...

I don't agree with *what* Trump's bank regulators are doing, but I am impressed by *how* they're doing it. As I told @politico.com: "The problem with prior admins is that Treasury took a hands-off approach to regulation... That meant there was nobody in charge." www.politico.com/news/2026/01...

➡️ @jeremykress.bsky.social 👥 As a Roosevelt Institute fellow, Jeremy Kress will work on banking industry policy, banking reform, and financial stability. Full bio 👉 rooseveltinstitute.org/authors/jere...

I'm thrilled to join @rooseveltinstitute.org as a think tank fellow. Looking forward to developing new ideas for a financial system that delivers productive, sustainable, and broad-based economic growth. Let's get to work!

Bribing banks to cap credit card rates by promising even more deregulation? Give me a break! If the White House wants to make credit cards more affordable, the CFPB has plenty of tools to do that. But that would require a functional CFPB…

Both Fed Vice Chairs gave speeches today. Not a word about Fed independence in either of their prepared remarks.

My latest article, "Systemic Risk and Macroprudential Regulation, co-authored with Seraina Grunewald, is now live as part of the Law & Contemporary Problems symposium on comparative US-EU financial regulation. lcp.law.duke.edu/article/syst...

When Trump floated a 10% credit card interest rate cap on Friday night, the banking trade groups issued a statement within hours. The day after Trump threatens the Fed Chair with criminal prosecution … crickets.

He would have a lot more credibility if he had spoken on behalf of his fellow board member when she was similarly attacked. I'm having trouble seeing anything brave or noble here - he's protecting himself more than the institution.

Early 2025: Trump admin tries to illegally shut down the CFPB, the newest member of the Federal Reserve system. Jay Powell says nothing. Summer 2025: Trump admin tries to illegally fire Fed Governor Lisa Cook. Powell says nothing. 2026: Trump admin comes for Powell. He finally finds his voice.

The Fed had ample opportunity to defend its independence when the President tried to fire Gov. Cook last year. It utterly failed to do so. It shouldn’t be surprising that (1) Trump kept targeting the Fed, and (2) the Fed only circled the wagons when the Chair was threatened.

One last grumpy comment letter before the year ends. This one opposes the FDIC's and OCC's ill-advised definition of "unsafe or unsound" practices. Here's hoping 2026 brings more sensible bank regulation. 🥂

Last week, Citi's CFO said the firm is "roughly two thirds" finished fixing its risk management and compliance systems. This week, the OCC terminated a related Citi enforcement action. I guess this OCC considers two-thirds to be good enough. www.bloomberg.com/news/article...

Fact check: The decade following the Dodd-Frank Act marked the longest period of economic growth in U.S. history.

Reflecting on the fact that “economic security” is essential to financial stability according to the same administration that is dismantling the CFPB. Truly Orwellian stuff. home.treasury.gov/news/press-r...

This is a dereliction of duty by the Financial Stability Oversight Council. But if there is a silver lining, it is that the Trump Administration now unequivocally owns whatever crisis lies ahead.

Imagine experiencing the AI bubble, crypto corruption, private credit explosion, trade war chaos, interest rate volatility, Treasury market disruptions, cyber vulnerabilities, geopolitical threats... ...and concluding that the #1 threat to stability is financial regulation.

For people who are allegedly committed to "the rule of law," the Treasury Department's new deregulatory approach FSOC appears to be in direct conflict with the Council's actual statutory authorities.

You wouldn’t know it from reading the eSLR rule the banking agencies finalized today, but a majority of public commenters opposed the proposal. The agencies just DGAF.

I've requested the extension of three comment periods this year, and the banking agencies have rejected me every time. Now bank lobbyists request the extension of the comment period to further water down the stress tests, and they get all the time they asked for. 🫠

The Federal Reserve demonstrates its commitment to transparency by publishing Bowman’s supervision rollback memo two weeks after it was written and the day after it was exposed by the New York Times. Great work, team! 👏

A huge challenge we are about to face, especially with regard to the economy, is that underneath all of the brazen, unbelievable chaos and corruption, normalized deregulation has quietly thrived. A crisis is coming but it's hard to hear the smoke alarms over the sound of the roof collapsing.

Some truly astonishing diktaks in this Bowman memo. At least the FDIC and OCC are putting their supervisory rollbacks through notice-and-comment - not hiding them in confidential memos like the Fed.

This is a preposterously poorly reasoned final rule that will let the 36 largest U.S. banks off the hook for their management failures. Inexplicable that two Democratic Fed appointees supported it.

"There is simply no legal requirement to turn the stress test into an open-book exam where banks get to help pick the questions. This is a policy choice, and a bad one at that." -- Me, being grumpy about the Fed capitulating to the banks, yet again www.bloomberg.com/news/article...

Inexplicable that Lisa Cook continues to support harmful bank deregulation by the administration that's trying to illegally fire her. SMDH. www.federalreserve.gov/aboutthefed/...

Despite what the Fed claims, there is no legal requirement to turn the stress test into an open-book exam where the banks get to help pick the questions. This is a policy choice, and a bad one at that.

Reminds me of a cartoon a colleague once taped to my door.

Earlier this year, JPMorgan refused to comply with new nonbank lending disclosure requirements [left]. Today, JPMorgan attributed recent turmoil in bank stocks to "very poor" nonbank lending disclosure [right]. 🫠

A deeply unserious statement on the Fed’s decision today to ignore the financial implications of climate change from the supposedly moderate, institutionalist candidate to be the next Fed chair.

The Fed, FDIC, and OCC proposed climate-related financial risk management principles for public comment before adopting them in 2023. Today, the agencies rescinded them with no notice and comment. Once again, the APA only applies in one direction. SMDH. www.federalreserve.gov/newsevents/p...

Bookmarking for later this week when the Fed proposes further weakening the stress test “to boost lending.” www.bloomberg.com/news/article...

All of these Domestic Systemically Important Bank mergers might be less objectionable if regulators had done *literally anything* to improve DSIB regulation in the aftermath of March 2023.

Important story about what we lose when a handful of behemoths dominate the banking system. “We don’t talk much about small businesses with enduring financial needs that have been forced into shotgun weddings with soulless institutions that are disinterested in their futures.”

With the US potentially coming to Argentina's financial rescue, I'm sharing my new paper on "Financial Statecraft." It critiques the government's deployment of the banking system for geopolitical purposes and proposes reforms to rebalance public and private power. papers.ssrn.com/sol3/papers....

Kate Judge, Co-Chair, Better Markets Academic Advisory Board & Columbia Law Prof. joins @jeremykress.bsky.social, Assoc. Professor U-M Business and Co-Faculty Dir. U-M Ctr on Finance, Law & Policy; @skandaamarnath.bsky.social, Exec. Dir. @employamerica.bsky.social to discuss what's next for the Fed.

May help explain why Bessent threatened to punch Pulte “in his fucking face”?

Looking forward to speaking at this event on Friday, where I will try to answer the question, "What's Next for the Federal Reserve?" 👇

The story tonight is not that Gov. Cook gets to vote this week. The Katsas dissent is *the* story. That the only Trump-appointed judge to opine on this case would effectively eliminate Fed independence is an ominous sign for what SCOTUS may ultimately do…

I was delighted to contribute to the Yale JREG symposium on @seanvanatta.bsky.social and @petercontibrown.bsky.social's excellent new book. My essay examines what the book can teach us about efforts to eliminate management ratings from the supervisory toolkit. www.yalejreg.com/nc/in-defens...

Nobel laureate Peter Diamond's Fed nomination languished in the Senate for more than a year. Stephan Miran is going to get confirmed in less than two weeks.

Today, the FSOC cut its own budget by >30%. The FSOC is funded through fees paid by large financial institutions, so this saves taxpayers $0. home.treasury.gov/policy-issue...

I am very much done with the histrionics about *Biden* politicizing the Fed.

Judge to Trump: Either prosecute and convict Gov. Cook or GTFO.

People who rent out dubiously mortgaged houses shouldn’t throw stones.

The ease with which the Senate Banking Committee let Stephan Miran disown his past writings contrasts sharply with how they forced Saule Omarova to defend mischaracterization of her scholarship just four years ago.

By my count, a solid majority of the comment letters on the banking agencies' supplementary leverage ratio proposal oppose the rule. Definitely inconsistent with Powell's standard that final rules should have "broad support among the broader community of commenters on all sides."